Google's parent company, Alphabet, announced an investment of $75 billion in artificial intelligence (AI) during the current fiscal year. This represents a 42% increase in AI spending for the company, driven by the emergence of DeepSeek, a Chinese AI alternative that has gained significant traction due to its energy efficiency.
DeepSeek's low energy consumption has challenged the dominance of NVIDIA and prompted Google CEO Sundar Pichai to acknowledge the threat, calling DeepSeek's efforts "tremendous." Google has responded by highlighting the efficiency of its own AI model, Gemini, and emphasizing its commitment to cost reduction in AI services.
The increased investment aims to make AI more accessible and cost-effective, fostering wider adoption and exploration of its potential applications. The arrival of DeepSeek has spurred a global race in AI development, with companies vying for dominance in the rapidly evolving field.